At this time, the firm appears to be overvalued. Dollar Tree shows a prevailing Real Value of USD104.51 per share. The current price of the firm is USD112.77. Our model computes the value of Dollar Tree from reviewing the firm fundamentals such as Current Valuation of 30.48 B, profit margin of (0.17) %, and Shares Owned By Institutions of 100.00 % as well as analyzing its technical indicators and probability of bankruptcy.
Enterprise Value
30.5 B
Price Sales
1.451
Trailing PE
0.169
Overvalued
Today 112.77
Please note that Dollar Tree's price fluctuation is very steady at this time. Calculation of the real value of Dollar Tree is based on 3 months time horizon. Increasing Dollar Tree's time horizon generally increases the accuracy of value calculation and significantly improves the predictive power of the methodology used.
The fair value of the Dollar stock is determined by what a typical buyer is willing to pay for full or partial control of Dollar Tree. Since Dollar Tree is currently traded on the exchange, buyers and sellers on that exchange determine the market value of Dollar Stock. However, Dollar Tree's intrinsic value may or may not be the same as its current market price, in which case there is an opportunity to profit from the mispricing, assuming the market price will eventually merge with its intrinsic value.
Historical
Market 112.77
Real 104.51
Hype 112.9
Naive 114.34
The intrinsic value of Dollar Tree's stock can be calculated using various methods such as discounted cash flow analysis, price-to-earnings ratio, or price-to-book ratio. That value may differ from its current market price, which is determined by supply and demand factors such as investor sentiment, market trends, news, and other external factors that may influence Dollar Tree's stock price. It is important to note that the real value of any stock may change over time based on changes in the company's performance.
Estimating the potential upside or downside of Dollar Tree helps investors to forecast how Dollar stock's addition to their portfolios will impact the overall performance. We also use other valuation drivers to help us estimate the true value of Dollar Tree more accurately as focusing exclusively on Dollar Tree's fundamentals will not take into account other important factors:
Dollar Tree is presently projected to have takeover price of 30.48 B with market capitalization of 2.62 T, debt of 7.83 B, and cash on hands of . Please note that takeover price may be misleading and is a subject to mistakes in financial statements. We encourage investors to thoroughly investigate all of the Dollar Tree fundamentals before making investing decisions based on enterprise value of the company
About 100.0% of the company shares are owned by institutions such as pension funds. The company recorded earning per share (EPS) of 6.56. Dollar Tree had not issued any dividends in recent years. The entity had 2:1 split on the 27th of June 2012. Based on the measurements of operating efficiency obtained from Dollar Tree's historical financial statements, Dollar Tree is not in a good financial situation at this time. It has a very high probability of going through financial hardship in August.
The asset utilization indicator refers to the revenue earned for every dollar of assets a company currently reports. Dollar Tree has an asset utilization ratio of 94.29 percent. This implies that the Company is making USD0.94 for each dollar of assets. An increasing asset utilization means that Dollar Tree is more efficient with each dollar of assets it utilizes for everyday operations.
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Dollar Tree Ownership Allocation
Dollar Tree holds a total of 236.14 Million outstanding shares. The majority of Dollar Tree outstanding shares are owned by other corporate entities. These outside corporations are usually referred to as non-private investors looking to obtain positions in Dollar Tree to benefit from reduced commissions. Consequently, institutional investors are subject to a different set of regulations than regular investors in Dollar Tree. Please pay attention to any change in the institutional holdings of Dollar Tree as this could imply that something significant has changed or is about to change at the company. Also note that almost one hundred eighty-eight thousand nine hundred nine invesors are currently shorting Dollar Tree expressing very little confidence in its future performance.
Dollar Tree Profitability Analysis
The company reported the revenue of 17.58 B. Net Income was 1.04 B with profit before overhead, payroll, taxes, and interest of 6.47 B.
About Dollar Tree Valuation
The stock valuation mechanism determines Dollar Tree's current worth on a daily basis. In general, an absolute valuation approach attempts to find the value of Dollar Tree based exclusively on its fundamental and basic technical indicators. As compared to an absolute model, our relative valuation model uses a comparative analysis of Dollar Tree. We calculate exposure to Dollar Tree's market risk, different technical and fundamental indicators, and relevant financial multiples and ratios and then compare them to those of Dollar Tree's related companies.
When running Dollar Tree's price analysis, check to measure Dollar Tree's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Dollar Tree is operating at the current time. Most of Dollar Tree's value examination focuses on studying past and present price action to predict the probability of Dollar Tree's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Dollar Tree's price. Additionally, you may evaluate how the addition of Dollar Tree to your portfolios can decrease your overall portfolio volatility.